Stablecoins are coming to the Bitcoin Lightning Network, expanding BTC price potential
- Lightning Labs has announced the arrival of fiat-pegged stablecoins on its network.
- Taro protocol, a blockchain startup, announced the use of the Lightning network to enable global, high volume and low-fee transactions.
- Analysts have predicted a massive spike in Bitcoin price as the network's potential expands.
The Taro protocol, a blockchain project that routes fiat-pegged stablecoins and cryptocurrencies through the Bitcoin network, uses Lightning. Proponents believe the development could influence Bitcoin price positively.
Bitcoin price on track to break out
The Lightning Network, a second layer technology that uses micropayment channels to scale Bitcoin's capability and boosts transaction speed, is set to welcome stablecoins on its network.
Expanding its functionality, the Lighting Network has announced the launch of the Taro protocol, a technology that routes fiat-pegged stablecoins and digital assets through the Bitcoin monetary network.
Taro, an open-source crypto protocol, is powered by Lightning, and this brings high volume, near-instant and low-fee transactions to stablecoins, alongside the security of the Bitcoin blockchain.
The launch of the protocol is a boost to the Bitcoin network through a Taproot-enabled Asset Representation Overlay (TARO). Elizabeth Stark, co-founder and CEO of Lightning Labs, announced Taro Protocol's launch on April 5, 2022.
Stark said,
With this technology, you could route all the world’s currencies through bitcoin.
Alongside new updates on its network, Bitcoin accumulation by institutional investors has picked up the pace. The Luna Foundation LFG has transferred a total of 231.4 million USDT to Binance. LFG intends to use these funds and buy Bitcoin, increasing the total volume of BTC in its reserve to $3 billion gradually.
Proponents believe the recent developments will positively influence Bitcoin price. Analysts have evaluated the BTC price trend and predicted a move to $53,000. FXStreet analysts expect Bitcoin price bounce off the $45,500 support level and continue its climb to $53,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
